Amazon Still Reaping Benefits from Risk on Amazon Prime | BNET.com

Amazon is reaping the benefits from the risk they took with their Amazon Prime offer...

Jeff Bezos, who was deemed crazy at the time of the Amazon prime launch in early 2005, said this:

"Amazon Prime is all-you-can-eat express shipping," Bezos says. "Though expensive for the company in the short term, it's a significant benefit and more convenient for the customer."

Well, it turns out Bezos was right. The Amazon Prime strategy has helped to accelerate user growth, purchase frequency and unit growth at the company in the past year, while the e-commerce market has "deteriorated".

Meaning: free delivery/unlimited delivery for an annual fee generated more costumers, induced cross-category shopping, increased average basket value and purchase frequency!

Amazon Still Reaping Benefits from Risk on Amazon Prime | BNET Intercom | BNET.com